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Outcome uncertainty and the couch potato audience

Author

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  • B Buraimo
  • D Forrest
  • R Simmons

Abstract

Previous studies of attendance demand for professional team sports have failed to yield clear- cut findings on the importance of outcome uncertainty to consumers. But potentially fewer problems should arise in examining the link between outcome uncertainty and demand in the television market for team sports, which in the case of English Premier League football is in fact a more important component in total club revenue. This study models both the choice of which games to show and the size of audience attracted by each game, exploiting data on audience sizes for games between 1993 and 2002. We propose a new measure of match outcome uncertainty and, from our results, both the broadcaster and the audience appear interested in competitive balance.

Suggested Citation

  • B Buraimo & D Forrest & R Simmons, 2004. "Outcome uncertainty and the couch potato audience," Working Papers 542822, Lancaster University Management School, Economics Department.
  • Handle: RePEc:lan:wpaper:542822
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    References listed on IDEAS

    as
    1. Jeffery Borland, 2003. "Demand for Sport," Oxford Review of Economic Policy, Oxford University Press, vol. 19(4), pages 478-502, Winter.
    2. Raymond D. Sauer, 1998. "The Economics of Wagering Markets," Journal of Economic Literature, American Economic Association, vol. 36(4), pages 2021-2064, December.
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    4. Daniel, Rascher, 1999. "A Test of the Optimal Positive Production Network Externality in Major League Baseball," MPRA Paper 25832, University Library of Munich, Germany.
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    8. Peel, David A & Thomas, Dennis A, 1992. "The Demand for Football: Some Evidence on Outcome Uncertainty," Empirical Economics, Springer, vol. 17(2), pages 323-331.
    9. Georg Stadtmann & Dirk Czarnitzki, 2002. "Uncertainty of outcome versus reputation: Empirical evidence for the First German Football Division," Empirical Economics, Springer, vol. 27(1), pages 101-112.
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    11. Avery, Christopher & Chevalier, Judith, 1999. "Identifying Investor Sentiment from Price Paths: The Case of Football Betting," The Journal of Business, University of Chicago Press, vol. 72(4), pages 493-521, October.
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